UK ‘working on two versions’ of customs pact, says Hammond

UK ministers will set out their vision of future trading relations with the EU in the coming weeks, finance minister Philip Hammond said on Thursday (24 May).

Speaking at the European Business Summit, Hammond said that ministers would set out more details on its customs plans in the coming weeks, adding that they were “working on two versions of a customs partnership”.

But he admitted that both options were still “works in progress” but would “minimise friction… and resolve the Northern Ireland border issue”.

Article 50 talks on the UK’s formal exit from the EU have made little progress since December, when EU and UK negotiators concluded agreement on a financial settlement worth up to £39 billion, and a transition period during which the UK will remain in the Single Market until December 2020.

European Union negotiators dismiss as “fantasy” some main British demands for Brexit, including on the sensitive issue of the Northern Ireland border, a senior EU official said on Thursday (24 May).

The deadlock is largely a result of divisions among Theresa May’s ministers on what relationship the UK will seek with the EU’s Customs Union and to avoid a hard border between Northern Ireland and the Republic.

“People will recognise that there is a range of views in the UK on these visions,” conceded Hammond, who campaigned for a Remain vote in June 2016.

Hammond said that ministers would also set out plans for the UK to maintain “a relationship with the EU agencies covering chemicals, pharmaceuticals and aerospace…seek a bespoke partnership on financial services.”

But he attempted to put pressure on EU leaders, remarking that “a deal will only be possible if both sides want it.”

“I fear that many see Brexit as a challenge for the Brits to sort out. This has to be two-way conversation. It can’t just be about British prosperity, it has to be about our European partners. Candidly, if European leaders don’t want it, then it won’t happen.”

“The best option for us is remaining in the European Union,” Scotland’s Culture and External Affairs minister Fiona Hyslop tells EURACTIV. Faced with the reality of Brexit, the Scottish government is “trying to identify the least-worst option,” she explains.

“The picture is a bit blurred,” said Markus Beyrer, director general of BusinessEurope.

“Business wants a deal, but we don’t want it at the expense of the single market. Time is running,” he added.

That scepticism is not only found in Brussels.

A report published on Thursday by the House of Commons Exiting the EU committee stated that the UK would probably have to remain in the EU’s Customs Unions after its formal transition period ends.

MPs added that it was “highly unsatisfactory” that ministers are still yet to agree what kind of trading and customs arrangements they wish to seek in the Article 50 negotiations.

“We are rapidly running out of time to get new trade and customs arrangements in place,” said Committee Chair Hilary Benn.

“Given that ministers are indicating that neither of the two options being discussed are likely to be ready by December 2020, when the transition period ends, the UK will in all likelihood have to remain in a customs union with the EU until alternative arrangements can be put in place,” he added.

May’s ministers are yet to agree on whether to offer a ‘maximum facilitation’ proposal nor the new customs partnership. However, UK ministers have conceded that neither scheme is likely to be ready before the end of the agreed 21-month transition/implementation period.

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One response to “UK ‘working on two versions’ of customs pact, says Hammond”

UK ministers will set out their vision of future trading relations with the EU in the coming weeks, spreadsheet Phil said. Begging the question – will this erm… “vision” thingy be conjured up before or after doing a few lines? (& would it make a difference)?

I to have visions: Camoron with a pig (nasty), Johnson (nastier), May pretending to be human (bloody terrifying) and so on. Oddly, the UK – EU relationship is defined by… laws. Any future UK-EU relationship will likewise be defined by laws. Oddly in the 30 odd years I have watched the EU and the institutions the word “visions” was not something one could apply to them. Ideas? yup, Process, very much so, grinding tedious procedures to exude directives and regulations… absolutely. Visions? Visonary? Nope..

Recently, the former head of UKREP Sir Ivan Rogers spoke candidly on Brexit. The link is here:https://policyscotland.gla.ac.uk/blog-sir-ivan-rogers-speech-text-in-full/
It makes interesting reading. Quite clearly he was not very successful in telling Tory dolts how the EU functioned & how Brexit would/would not work out. His bluntness clearly caused upset in Tory-Brexit-Fantasy land – hence his sacking. Another thing that came out of the speech was the total lack of knowledge amongst Tory ministers and Tory MPs on how the EU functions. Hint to Barnier: your opposite numbers apart from being border-line sane also do not understand the EU and how it functions – tell me – do you take tranquilisers before meeting them?.

This then extends to “who owns the problem”: Hammond: “I fear that many see Brexit as a challenge for the Brits to sort out” – well I’m sorry to tell you Phil, but it’s the UK leaving the EU – not the EU chucking the UK out. The Tories own the problem toots – sort it. And – lets try this: The deadlock (in negotiations) is largely a result of divisions among the Maybot’s ministers – but no according to Hammond its the EU’s fault. Prat.

Here is another suggestion for Hammond: pretty please does not work – due process and grinding tedious detail does (see above). Another reason for little progress is that Davis the dolt is the guy responsible for moving things along. Back in 1994 he was interviewed in Commission en Direct (he was minister for Europe FFS) & spouted 24 carat nonsense then (Mr Barnier – happy to send you a copy of his deluded ramblings – and my reply – which was published). His attitudes have changed not one whit & the problems the Brits have can be partly laid at his door and that of the Maybot (unfit to run a girl guide troop).

To conclude: want a cock-up – vote Labour – they mean well but make mistakes. Want a 24 carat disaster with all the trimmings – vote Tory. Want madness? vote UKIP – which is now part of the Tory party leading to: a mad never ending 24 carat disaster. I think I’ll turn it into a pantomime – oh hang on – it already is.